Petronas uses Bintulu Port’s jetties to facilitate the exports of LNG obtained from the LNG complex located next to the port which is operated by Petronas’ partly-owned MLNG.
KUCHING (Sept 12): AmInvestment Bank Bhd (AmInvestment Bank) is positive on the outlook for Bintulu Port Holdings Bhd (Bintulu Port), which is the sole port operator that holds a Petronas Supply Base licence and operates the largest liquefied natural gas (LNG) export terminal in East Asia.
AmInvestment Bank gathered that Petronas and its clients have long term contracts with an annual contract quantity of 13.4 million tonnes per annum (MTPA) in 2021.
“Furthermore, we expect growth in LNG demand as Europeans plan to reduce their dependency on Russian’s LNG following the Ukrainian conflict in February this year,” the research firm said.
“In line with net-zero transition policies, there is an increasing demand for cleaner fuels as LNG because it produces 40 per cent less CO2 than coal and 30 per cent less than oil.”
Hence, AmInvestment Bank has assumed a five per cent growth in LNG throughput per year for financial year 2022-2024 (FY22F-24F).
“This is similar to the five per cent growth forecasted by Shell and slightly lower compared to the five-year compound annual growth rate (CAGR) of seven per cent for LNG imports.”
The research firm recapped that Petronas uses Bintulu Port’s jetties to facilitate the exports of LNG obtained from the LNG complex located next to the port which is operated by Petronas’ partly-owned Malaysia LNG (MLNG).
“The complex is one of the largest LNG production facility in a single location. It sits on a 276 hectares of land, comprising four LNG plants with a total of nine trains.
“The complex has a production capacity of 29.3MTPA, 20 per cent of the Pacific Basin’s capacity.”
According to AmInvestment Bank, Malaysia is the fifth largest LNG exporter in the world, accounting for seven per cent of global LNG exports in 2021.
It noted that the bulk of Malaysia’s LNG exports came from Sarawak.
“We expect Sarawak to continue being the country’s main LNG exporter as the state has 58 per cent of Malaysia’s LNG reserves and produces 61 per cent of the country’s daily LNG production.”
AmInvestment Bank also expects the throughput volume for dry and break bulk to grow by eight per cent in FY22F, four per cent in FY23F and three per cent in FY24F.
The research firm noted that this is on the back of Press Metal commenced Phase 3 of its expansion of aluminium smelter plant in the first quarter of FY22 (1QFY22).
The expansion will add an annual production capacity of 320,000 tonnes to the existing 640,000, bringing the total to 960,000 tonnes.
In addition, AmInvestment Bank highlighted that Malaysia Phosphate Additives (Sarawak) will commission Phase 1 of Samalaju Integrated Phosphate Complex by December 2022, and commercial production will begin in FY23F.
The annual production capacity is 183,000 tonnes for phosphate products.
The research firm further highlighted that PMB Silicon Sdn Bhd’s annual production capacity is set to increase as Phase 3 of its expansion is targeted to commence in FY23F.
On another note, AmInvestment Bank gathered that the bulk of containers are handled by Bintulu International Container Terminal (BICT).
“With an annual capacity of 450,000 TEUs, BICT operated at 79 per cent of its capacity in FY21.
“BICT plans to increase its annual capacity to 500,000 to 550,000 TEUs in FY22F-23F with an estimated capex of RM33 million in FY22F.
“This is to acquire a unit of quay crane and two units of empty container handler.”
AmInvestment Bank also gathered that Samalaju Industrial Port commenced container handling services for completed goods in December 2021 (724,000 TEUs handled in FY21) with an annual capacity of 50,000 TEUs.
As such, the research firm expects container throughput volume to grow marginally from FY22F to FY24F.
“Higher contribution from the newly commenced container handling services in Samalaju Industrial Port in December 2021 is expected to be offset by lower transhipment volumes.
“This stems from expected lower transhipment volumes due to weaker global economic growth prospects.”
from Borneo Post Online https://bit.ly/3Dj3Z4T
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